I suggest not doing that. There is no easy access to a bathroom. You do, however, have access to outside, so turn this into additional seating area and add an outside patio...maybe with a fire pit?

Inside Out · More Info

Take down kitchen wall and make the family room space larger

I would make it look like an office but function as a bedroom.

Day bed by day and guest beds by night.

Sea Cliff SF · More Info

Always set up but looks sleek

Jerry Bussanmas · More Info

This is remote controlled? Cool!

Home Office with Zoom-bed · More Info

Murphey bed.

Central London Apartment · More Info

Lots of ideas by looking thru office/guest room pictures on Houzz.

oh wait, thats the front door? forget what i said then.

I have to agree with soosun2, I'd create a multi-purpose room. Either exercise and bedroom, or office and bedroom.

Yes, the dividers should work fine.

Funny you should post that, as I have been wondering the same thing.... I would put a sliding barn door along the wall with the kitchen. Guests can close it at night. Or even hang a rod with a curtain to close.

Easier still, have a large folding screen you can bring in to provide some privacy for your guest.

7' Tall Woven Fiber Room Divider, White, 8 Panel · More Info

Sofa beds are not normally the most comfy things. And, as you don't really use the room as it is now, I would create a bed/lounge space. Let your imagination go wild! You may find yourself drawn in there also, to nap, to read...

My Houzz: Lovely Lightness for a Brooklyn Apartment · More Info